"The New Deal"

If you aren’t reading or tracking Keith McCullough of ResearchEdge’s musings, you really should be. He is thoughtful, flexible, and practically-minded, all valuable traits in deranged times like these. Here is part of today’s missive:

Fortunately, today’s “New Reality” doesn’t have a Hitler. While we have the nuisances of Chavez, Ahmadinejad, and Putin, the power of their collective voice diminishes alongside the price of oil. Re-flating will most definitely turn up their non-sensical volume again, so if you’re in that inflation camp, be careful what you wish for.

In Asia, those living in India and Pakistan are waking up to the dire realities that are associated with expedited deflation. Commodity price erosion is not only a function of weakening economic demand, but it ignites the beasts of social unrest. When people are losing money and killing one another, bad things happen. If these two countries weren’t stationed at the heart of the world map’s panic button, I’d be less concerned. Make no mistake, the canaries in these coal mines have nuclear capabilities. No matter what the mass media told you on Friday doesn’t change the fact that a major geopolitical risk card was just turned face up on the world’s economic table.

More here.

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